Investigating the consequences of water reduction on the production of economic sectors in the framework of the modified model of supply-oriented social accounting matrix.

Document Type : Research Paper

Authors

• Abbas Parvar ¹
• hamidreza mirzaei ²

¹ Assistant Professor, Department of Agriculture Economics, Jiroft Branch, Islamic Azad University, Jiroft, Iran

² Associate Professor, Department of Agricultural Economics, Faculty of Agriculture, Shahid Bahonar University of Kerman, Kerman, Iran, respectively

10.30495/jae.2023.29550.2308

Abstract

Water is one of the important basic resources for the development of the country and the most important factor of production in agriculture. Today, the international community is aware of the importance of water in order to have sustainable economic growth now and in the future. This study has investigated the effect of reducing water resources on production and employment of economic sectors. The results are presented in the form of absolute and relative effects. The effects and consequences of reducing 10 and 40% of water resources have led to a decrease in production of 8896617 and 35586469 million rials for various economic sectors. In terms of absolute effects, the vulnerability of urban households due to reduced water resources has been higher than rural households. In terms of relative effects, the greatest impact of income reduction is on low-income urban households. The relative reduction of water resources from the supplier perspective has a greater impact on the labor factor than the capital factor.

Keywords

• Social Accounting Matrix
• Production
• Economic sectors

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